Introduction: Overtime Pay in the Tech Industry
The tech industry is known for long hours and demanding projects, but overtime pay laws still apply. Under the federal Fair Labor Standards Act (FLSA), most employees must receive overtime pay (1.5 times their regular rate) for all hours worked over 40 in a workweek. However, there are certain exemptions that employers often claim to avoid paying overtime. One of the most commonly misunderstood is the “computer professional” overtime exemption. Just because you work with computers or have a tech-related job title doesn’t automatically mean you’re exempt from overtime pay.
Tech workers are frequently misclassified as exempt from overtime. High-profile lawsuits demonstrate this issue: software engineers at Electronic Arts won a $14.9 million settlement after being misclassified, and IBM paid $65 million to settle an overtime class action covering thousands of tech workers. Understanding the rules around the computer professional exemption can help tech employees ensure they aren’t being cheated out of overtime pay.
If you’re a tech worker facing overtime disputes or questions about the computer professional exemption, it’s time to take action. The Lore Law Firm can work to ensure you get what you deserve. Contact us for guidance on your case or call us at (866) 559-0400 to confidentially discuss your situation today. Let’s work together to secure your financial future.
Overtime Basics: Exempt vs. Non-Exempt Employees
Under the FLSA, the default rule is that employees are “non-exempt,” meaning they must be paid overtime for hours over 40 per week. Non-exempt workers are often paid hourly, and overtime pay is a legal right to compensate long hours. “Exempt” employees are not eligible for overtime; they usually are paid a fixed salary and meet specific criteria under the law. Employers carry the burden of proving an employee fits an exemption.
It’s important to note that job titles alone do not determine exempt status. Just calling someone a “Software Engineer” or “IT Specialist” isn’t enough – their actual duties and pay must meet the strict tests defined in law. Many tech industry labor laws at the federal and state level aim to prevent misclassification, because misclassified employees can miss out on overtime pay they legally deserve.
What Is the Computer Professional Overtime Exemption?
The computer professional exemption is a provision in the FLSA that exempts certain high-skilled computer workers from overtime if they meet both a duties test and a compensation test. This exemption covers roles like software developers, programmers, systems analysts, and similar jobs – but it only applies to those actually performing advanced technology work. Simply working with computers or in the tech industry does not automatically make you exempt.
Under federal law (29 U.S.C. § 213(a)(17); 29 C.F.R. § 541.400), to qualify as an exempt computer professional, an employee must meet both the duties test and the pay threshold set out in these regulations.
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Qualifying Job Duties: Your primary duty must consist of work such as:
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Applying systems analysis techniques and procedures, including consulting with users, to determine hardware, software, or system functional specifications.
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Design, development, documentation, analysis, creation, testing, or modification of computer systems or programs, including prototypes, based on user or system design specifications.
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Design, documentation, testing, creation, or modification of computer programs related to machine operating systems.
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A combination of the above duties which requires the same level of expertise.
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This exemption covers roles like software developers, computer systems analysts, and certain engineers whose primary duties involve programming or systems analysis, not general engineering or hardware-related design. “Primary duty” means the main, most important duty you actually perform, judged in the context of your overall job.
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Skilled Computer Occupation: You must be employed as a computer systems analyst, computer programmer, software engineer, or other similarly skilled worker in the computer field doing the above duties. This generally refers to professionals who work in programming, software development, or network and systems design. Job title isn’t determinative – it’s the nature of the work that counts.
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Compensation Requirement: You must be compensated either on a salary basis of at least $844 per week (about $43,888 per year as of July 2025), or on an hourly basis of at least $27.63 per hour. The hourly rate remains fixed by regulation, but the salary threshold will increase again to $1,128 per week in 2026. This is the minimum pay threshold. If a tech worker is salaried but making less than $684 per week, they cannot be classified as exempt. The hourly option ($27.63/hour) is unique to the computer exemption and allows certain highly-paid hourly IT professionals to be exempt without a salary.
If all of the above conditions are met, an employer may classify the worker as exempt from overtime. However, this exemption is narrowly construed – any doubt tends to favor finding the worker non-exempt (eligible for overtime). The Department of Labor emphasizes that using computers in your job is not enough; the exemption targets specific high-level computer-related roles.
Who Isn’t Covered: Common Misclassifications in IT
Many tech employees do not fit the computer professional exemption. The law explicitly excludes certain types of workers:
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Computer hardware technicians and repair personnel: Employees who manufacture or repair computer hardware are not exempt. Their work, while tech-related, is not the creative or analytical software/system work that the exemption covers.
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Help Desk and IT Support Staff: IT support specialists, help desk technicians, and others who troubleshoot or maintain computer systems for users generally do not qualify. The Department of Labor has confirmed that IT support roles are non-exempt – meaning these employees are entitled to overtime pay because their primary duties don’t involve the level of independent programming or systems analysis required.
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Engineers and CAD drafters (who use computers): Professionals like engineers, drafters, and architects may heavily use computer software, but if their primary role is not computer systems analysis or programming, they aren’t exempt under this category. Their work is dependent on computers, but they are not working in the computer field itself.
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Graphic designers, digital media specialists: Creative roles that use computers to produce content are usually non-exempt, since they don’t involve programming or systems analysis as the primary duty.
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Entry-Level IT Workers and Trainees: Employees in computer-related jobs who lack independent judgment or specialized skill often do not meet the exemption. The exemption is meant for highly skilled work; employees still learning or following strict guidelines likely remain overtime-eligible.
Importantly, being paid a salary or having an impressive title doesn’t automatically make you exempt. Many IT professionals who are salaried and even highly-paid are still entitled to overtime if their actual job duties don’t satisfy the exemption criteria. Network, systems, and database administrators are generally non-exempt because their primary duties involve maintenance and troubleshooting – not programming or systems design. Always look beyond the title: what matters is whether you’re designing and creating computer systems or simply keeping existing systems running.
Another frequent misclassification issue is labeling employees as “independent contractors” to bypass overtime rules. Companies may hire IT contractors and pay a flat rate, but if those individuals are working full-time under the company’s direction, they might legally be employees owed overtime. Simply calling someone a contractor or giving them a salary doesn’t mean overtime can be ignored.
Ensuring Compliance: Know Your Rights
The computer professional exemption is complex. Because of this complexity, many employers (and even employees) misunderstand it. If you’re in the tech field, it’s wise to verify whether your role truly meets the exemption tests. Here are key points to consider:
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Check your duties: Do you spend most of your time writing code, designing software or systems, and solving novel tech problems? Or do you mostly install updates, configure existing software, and follow established procedures? If it’s more of the latter, you are likely non-exempt and should be getting overtime pay. Creative, high-level programming work might be exempt; repetitive support work is usually not.
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Check your pay structure: Are you paid at least $684/week on a salary basis or $27.63+ per hour? If not, you must receive overtime pay – no exceptions. If you are paid well above that, the pay alone still doesn’t exempt you – it’s just one condition. But pay below that threshold automatically means non-exempt status.
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State laws: Some states, like California, have stricter tech-sector wage laws. In 2025, California’s computer software employee exemption applies only to those earning at least $115,763.35 per year (or $55.58/hour) and meeting detailed duties criteria — a far higher bar than federal law.
If you suspect you’ve been misclassified, do not simply take your employer’s word that you’re exempt. Misclassification is common in the tech sector, and it can cost you thousands in unpaid wages. Discussing your situation with an experienced employment attorney can help determine if you’re owed overtime pay. The FLSA allows workers to recover unpaid overtime going back up to two or three years, plus additional liquidated damages in many cases. That means you could recover double the amount of unpaid overtime as a penalty to the employer, plus attorneys’ fees.
Moreover, the law protects you from retaliation if you inquire about or claim your overtime rights. Employers cannot fire or punish you for raising concerns about wage violations. The goal of these laws is to ensure tech companies pay their fair share for the long hours they get from employees.
Conclusion
Overtime rules can be confusing in the fast-paced tech world, but they’re there to protect workers from exploitation and burnout. The computer professional overtime exemption is meant to apply only to truly specialized tech roles — those who create and innovate in the realm of computer systems and software, not the countless IT professionals who keep the digital world running day-to-day. IT overtime pay remains a right for a large portion of tech workers.
If you’re a tech employee putting in long hours, it pays to understand whether you should be getting overtime. Companies sometimes stretch the definition of “exempt” too far, and when they do, tech workers have legal recourse to recover their overtime pay. In an industry built on logic and rules, it’s only fitting that labor laws have clear rules too: either you meet the exemption’s strict tests or you get overtime. By knowing those rules — and seeking experienced help when in doubt — software developers, engineers, and IT specialists can ensure they are fairly compensated for their hard work in the tech industry.
Always remember, overtime isn’t a privilege or a perk; it’s the law for those eligible. And no matter how innovative or “casual” a company culture is, wage laws are not optional. Tech workers should be empowered to ask the right questions and stand up for their rights — because passion for technology shouldn’t come at the cost of fair pay.
If you’re a tech worker facing overtime disputes or questions about the computer professional exemption, it’s time to take action. The Lore Law Firm can work to ensure you get what you deserve. Contact us for guidance on your case or call us at (866) 559-0400 to discuss your situation today. Let’s work together to secure your financial future.
